FDIC to ease banking hiring requirements for people with criminal backgrounds

The FDIC board today voted in favor of proposed rulemaking to implement the Fair Hiring in Banking Act, a 2022 law that eases existing restrictions on bank hiring of job candidates with criminal histories.

Banks and credit unions previously could not hire a person convicted of an offense involving dishonesty, breach of trust or money laundering without first seeking consent from the FDIC or the National Credit Union Administration. Among its changes, the Fair Hiring in Banking Act excludes misdemeanor criminal offenses committed more than one year before the date on which an individual files an application. It also excludes certain offenses that occurred more than seven years ago, although it leaves in place restrictions for people convicted of offenses such as bank fraud and money laundering. It would also exclude offenses that were committed when the individual was 21 or younger.